Charles has been asked to join a newpartnership that is developing arecreation facility. He does not want tobe liable for the firm's debts if theproject should fail. He could stillparticipate as a:general partner.limited partner.silent partner.working partner.contributor.

Choosing the right business structure is a key factor in determining the success of any business…

Answered: Charles has been asked to join a new…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 22P

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Sam wants to help his brother, Lou, start a new business. Lou isan auto mechanic but has little business sense, so he needs Sam to help him make business decisions. Should this partnership be arranged as a general partnership or a limited partnership? Why? Should they consider any other form for structuring their business? In your post, only discuss the partnership entity options, do not discuss other business types such as S-corporations.
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